Have recently heard about Nesara ( National economic security and reformation act) and then i read this: http://www.maxkeiser.com/2013/05/wo...erve-as-an-underpinning-for-paper-currencies/ Huge if correct of course. What do you think? It should solve the mess we are in right?
As usual, I checked source, and it's Silver Doctors. As usual, I checked Silver Doctors source, and as usual, it's just some prediction by someone they call a 'world bank whistle blower'. Now about where this prediction is based on a Bloomberg article about BRIC nations, being Brazil, Russia, India, China and South Africa, that would create a 'development bank', not saying anything about gold / silver / bullion. So, I have to agree with the previous post. Today is a better moment to buy gold / silver than 1 and 2 years ago. Even a better moment than some other moments 3 and 4 years ago. But this Silver Doctors bleh is the exact same bleh we saw at $50 and that we will see further at any future price. Because they sell gold / silver as a company, with a profit based purely on a price difference superimposed on the inflation trend. A superimposition where a surface about the inflation trend line implies a surface under it. So, it can only come from their customers, that thus see a part of their purchasing power going to them, instead of to more gold / silver. Something important to realize.
In a word - no. At least, not from the West, and not "in conjunction" with Nesara. It's my considered belief that the US holds little to no gold, having leased it all out. Considering this in light of the reserves the East, particularly China has, I would seriously doubt the US would be looking toward wanting to back their currency with gold at this time. Thinking in terms of the fact that the USD is still (though arguably this is slipping from favour) the reserve currency of the world, the US will want to do everything it can to retain that status quo. Certainly moving the USD to being backed by gold would be a positive move in this regard, but at the moment, I do not believe the US can do this (see above), unless they're going to back it with paper gold - which would be unacceptable, of course. The East, China in particular, on the other hand, seems to be keen on establising the RMB as at least an alternative reserve currency - the difference in this case is that if they chose to make this more attractive by backing it with gold, I truly believe they have the wherewithall to do just that.
Interesting question, and one that has been in the back of my mind too. Whilst I can easily formulate the opinions I have above, sadly, that area of "doing stuff" is a bit of a closed book to me. I would suspect there will be several solutions - feasibly one of them may be as simple as obtaining some RMB in paper notes and sticking them in a sock-drawer, however, that also strikes me as "dead" money, and a relatively crude solution. I'd be very keen to hear of any other ideas or suggestions the community may have in this regard (personally, I'm seeing an exposure to RMB as being a better medium term bet than buying junior mining stocks, where I believe some of the juniors will have to shortly close up shop if the price of gold doesn't improve soon!).
How about a Chinese bank account? "We're perfectly happy eating in a Chinese restaurant. But will we start banking in a Chinese bank? It's not as crazy as it sounds ' the Bank of China ' in the US has started allowing American customers to open an account and to invest up to $4000 a day and a total of $20,000 a year in Chinese yuan, or renminbi ' Is this a good idea? ' Investing in Chinese currency may sound like something best left to speculators. But in reality this may be no more exotic than, say, Peking duck. Holding some of your money in Chinese currency ' might be a very sensible move for all of us. Why? Five reasons: First, it's very unlikely to go down. Of how many investments can you say that? The yuan has very little room to fall further because it is already seriously undervalued. Second, it's very likely to go up. China is growing rapidly, is a manufacturing powerhouse and is running an enormous trade surplus. Countries like that usually have very strong currencies ' And these days, a rising yuan may be in Beijing's interest. China no longer has the same need for such an artificially cheap currency. After all, the plan worked: It has now taken over a vast amount of manufacturing from the US. And it's moved up from making socks and toys to iPads and now stealth bombers ' The third reason for holding some money in yuan: What else are you going to do with it? Interest rates elsewhere are minimal, so you won't be missing out on much. Fourth, it makes you more diversified. Fifth: It may help you offset the costs of US economic decline. Our share of the world economy, which was 24% a decade ago, is this year expected to sink below 20%, the lowest figure in modern times. We are running a current account deficit of 3.5% of gross domestic product. Our national debt has nearly tripled in a decade, and deficits stretch out as far as the eye can see. Will the greenback survive as the world's reserve currency? Why should it? The British pound didn't '" (SmartMoney, January 14, 2011) I wonder if this still applies in 2013?
I would be reluctant to deposit any significant amount of any kind of "cash" in any bank these days, even an honest Chinese bank. I also doubt there is enough gold in existence on the planet to back the current amount of US dollars floating around but isn't that one of the reasons for stacking PM's?
There have been mass arrests that we have not heard of. Boj and Fed lost control of bond markets. Much more going on behind the scenes according to my sources. But we will see. Such a system would be the best solution from here though.
Interesting artical. One problem I could think of investing (depositing with chinese bank) is that the Chinese lend to the US. The Chinese wont realky care about the small investors/depositors if there is a reset and they will be the ones who hold the can whilst the state will make sure with its gold holdings to come out on top. I read an artical some time ago about mum n dad investors being the ones who have really allowed China to lend so much because of the size of the Chinese population. While each person may not have huge savings, the volume more then makes up for it. If China went to a gold standard, I think it would be like everywhere else and the currency may be revalued. It would be nice to think that theirs would increase but someone will be left holding part of the US debt outside the US and China carries a large amount of it. I think thats why the whole investing in PMs works, its a stable (volume) commodity. Its hard to find extra on short nitice, it cant be printed (physical) into exsistance. Aside from the gold backed question, its hard not to think that if it was ever detached from the USD and the finacial system kept going that its value wouldnt just reset higher over night. Even with the problems the chinese have in their economy, they have built a huge manufacturing base whilst everyone else has been shrinking theirs and moving it all to china, india and others.
What if an American converts a total of $60,000 USD into RMB and deposits into a Chinese bank over several months period and then there is a significant devaluation or worse yet, a run on the Chinese bank and the bank closes for good. How will I be protected? At least in my current bank where I have USD held, there is the FDIC to help against the risk of a bank closing its doors.
Bundesbank Executive Board member Joachim Nagel believes that the is well on its way to becoming one of the future global reserve currencies due to its increasing convertibility. With all the trade agreements they've been making with some very big countries that negates the use of the USD and all the gold they've been importing, it seems very likely that China plan on implementing a gold backed currency. Anyone think it'd be a good idea to buy some now based on that guess?
^ I have thought about that for a while now... a guy just never knows. its all in the risk. I would convert to some.
"With all the trade agreements they've been making with some very big countries that negates the use of the USD and all the gold they've been importing, it seems very likely that China plan on implementing a gold backed currency. Anyone think it'd be a good idea to buy some now based on that guess?" I wondered about this stuff for a while. Recently though a friend of mine has been in talks with Chinese state investors and he believes they arent thinking this way at all - which surprised me. He is pretty high up, large company chairman. Deals are in billions, so I have to listen. Of course they are not going to tell us everything, but they are far more open than most of us think. I will be in Melb in a few days and I see the Bank of China in Collins Street, I might wander in for a what's what talk. They might only be bus. To bus., I don't know, but I will find out if it is possible for non Chinese to have accounts. You can certainly buy currency now, but other than spending it, I have no idea how you can keep it or invest it. Interesting exercise. Have a great morning. Gazza.
One would think by stacking PM's, you would have access to whichever currency you desired. It is probably less a gamble than punting on the AUD, USD, Euro, Yen, Yuan etc. This way you only get one thing wrong.
Right enough, Sammy - but for me - personally speaking, whilst I'm happy to stack PM's until the cows come home, it would be nice to spread things out a bit, not have all the eggs in one basket so to speak. Not that I think you can go too far wrong with PM's, mind you, but I also figure, we don't know for sure what's going to happen, and in a case like that, options are a wonderful thing to have
